GBP/USD Price Analysis: Bears move in for the kill, testing key support structure
|- GBP/USD bulls are under pressure following a rally in the Greenback.
- The bears are testing commitments at critical technical structures on the daily chart.
GBP/USD followed EUR/USD lower on strong US data and the European Central Babk's dovish 25bp hike. The pair dropped from 1.2995 to a low of 1.2781 while the markets reduce more hawkish Bank of England rate expectations for the August 3 interest rate meeting. This leaves the technical structure complicated and two-fold for Cable as the following illustrates:
GBP/USD technical analysis
Prior to the Thursday sell-off, Cable was rallying in line with the bullish trend on the back of the Fed's move and subsequent market take on the meeting. However, along came Thursday:
This has seen the pair drop hard into support and leaves a bearish prospect on the charts for a deeper test of the broader bullish cycle for the days ahead.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.